Payouts for overbooked flights?

PASSENGERS could be given the right to demand hundreds of pounds in compensation if their flights are overbooked or cancelled. Under proposals being discussed by members of the European Parliament, airlines across the European Union would be forced to reimburse passengers between £500 and £1,000. Travellers who discover their seat has been taken would be able to claim a set amount of compensation, which could exceed the value of their ticket.

But the move could see the prices of both budget and scheduled airline seats soar. Airlines are warning they will raise all fares by up to 10% to cover the cost. They say they rely on overbooking because many passengers do not turn up. Paul Moore, director of corporate affairs for Virgin Atlantic, said it was lobbying to block the plan.

The proposals will be debated by MEPs and, if passed, will go to a vote before being signed off by the Council of Ministers at the end of the year and becoming law in member states.